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Author Topic: Last minute Covenant grrrrrrrrrrr  (Read 21004 times)

Dangermouse

  • Joined Feb 2010
Last minute Covenant grrrrrrrrrrr
« on: February 16, 2010, 07:20:30 pm »
The people Im buying my land off have just slapped a last minute covenant on it.....

If I develop or build on the land I have to give them 50% of the value if I sell it.....grrrrrrrrrrrrrrrr

jameslindsay

  • Joined Feb 2009
  • Nr St Andrews, Fife
  • "Blossom" one of my Pygmy Goats
Re: Last minute Covenant grrrrrrrrrrr
« Reply #1 on: February 16, 2010, 07:23:40 pm »
Can't you call their bluff and threaten to walk...?

RUSTYME

  • Joined Oct 2009
Re: Last minute Covenant grrrrrrrrrrr
« Reply #2 on: February 16, 2010, 07:29:57 pm »
no problem ...build a house on it ....then sell it to your other half , or your mum or dad whoever ? for £100 more than you bought it for .... then a month later buy it back after giving the people you buy it off their £50 .....problem solved..... ::) ;D

cheers

Russ

jameslindsay

  • Joined Feb 2009
  • Nr St Andrews, Fife
  • "Blossom" one of my Pygmy Goats
Re: Last minute Covenant grrrrrrrrrrr
« Reply #3 on: February 16, 2010, 07:36:45 pm »
no problem ...build a house on it ....then sell it to your other half , or your mum or dad whoever ? for £100 more than you bought it for .... then a month later buy it back after giving the people you buy it off their £50 .....problem solved..... ::) ;D

cheers

Russ

Only you would come up with that Russ, great idea though!

Dangermouse

  • Joined Feb 2010
Re: Last minute Covenant grrrrrrrrrrr
« Reply #4 on: February 16, 2010, 07:38:27 pm »
no problem ...build a house on it ....then sell it to your other half , or your mum or dad whoever ? for £100 more than you bought it for .... then a month later buy it back after giving the people you buy it off their £50 .....problem solved..... ::) ;D

cheers

Russ

Funny you should say that as its the fist thing came into my head...... :D

dixie

  • Joined Mar 2009
Re: Last minute Covenant grrrrrrrrrrr
« Reply #5 on: February 16, 2010, 07:39:10 pm »
Seems to be the done thing nowadays, land sellers retaining an interest if its sold on or developed for profit.

Dangermouse

  • Joined Feb 2010
Re: Last minute Covenant grrrrrrrrrrr
« Reply #6 on: February 16, 2010, 07:45:33 pm »
To be honest building a house on the land diddnt even enter my head, its 2.5 acres of class 2 agricultural land.

But I do want to put up a barn and some hardstanding etc.......

Ill have to get the solicitor to have a closer look at this covenant thingy before I commit to buying now....grrrr

doganjo

  • Joined Aug 2012
  • Clackmannanshire
  • Qui? Moi?
    • ABERDON GUNDOGS for work and show
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Re: Last minute Covenant grrrrrrrrrrr
« Reply #7 on: February 16, 2010, 08:20:26 pm »
THAT was my first thought!  It may not be a valid covenant!  There are legal rules for the terms laid down in covenants.  Get him to check also that it doesn't cover building a barn and only a house.
Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

Dangermouse

  • Joined Feb 2010
Re: Last minute Covenant grrrrrrrrrrr
« Reply #8 on: February 16, 2010, 08:30:03 pm »
THAT was my first thought!  It may not be a valid covenant!  There are legal rules for the terms laid down in covenants.  Get him to check also that it doesn't cover building a barn and only a house.

will do  ;D

doganjo

  • Joined Aug 2012
  • Clackmannanshire
  • Qui? Moi?
    • ABERDON GUNDOGS for work and show
    • Facebook
Re: Last minute Covenant grrrrrrrrrrr
« Reply #9 on: February 16, 2010, 08:34:52 pm »
Also check how the 50% is calculated?  Is it before or after expenses - legal fees, selling fees, cost of building etc etc
Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

Womble

  • Joined Mar 2009
  • Stirlingshire, Central Scotland
Re: Last minute Covenant grrrrrrrrrrr
« Reply #10 on: February 16, 2010, 08:56:06 pm »

If they won't abandon it, perhaps they'd accept commuting it to only apply for 5 years after the sale etc? It does sound like a restriction you could do without to be honest!
"All fungi are edible. Some fungi are only edible once." -Terry Pratchett

dixie

  • Joined Mar 2009
Re: Last minute Covenant grrrrrrrrrrr
« Reply #11 on: February 16, 2010, 09:08:04 pm »
Its probably a clause rather than a covenant, which is within the sellers rights to include as part of the sale! Although how far along has this sale gone before he added this clause? Speak to your solicitor,  it maybe if you sell or develop, say within the next 10 years or so? It maybe agricultural land but so much land has been turned over to development in recent years, hence why landowners are slapping these clauses on! Theres a few acres near us that went to auction a few times, the seller had a clause that if it was developed on in the next 30 years he retains a percentage of the profits! needless to say it didnt sell, that is until the agent sent over 100 brochures to pikies that were interested, an adjoining neighbour bought it!!

doganjo

  • Joined Aug 2012
  • Clackmannanshire
  • Qui? Moi?
    • ABERDON GUNDOGS for work and show
    • Facebook
Re: Last minute Covenant grrrrrrrrrrr
« Reply #12 on: February 16, 2010, 10:52:53 pm »
What are pikies?
Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

gavo

  • Joined Aug 2008
  • Belcoo, Enniskillen, N.Ireland
  • Crazy Pig Lover
Re: Last minute Covenant grrrrrrrrrrr
« Reply #13 on: February 16, 2010, 10:59:21 pm »
In my neck of the woods they are gypsies or generally people that mainstream society deems unacceptable.

Roxy

  • Joined May 2009
  • Peak District
    • festivalcarriages.co.uk
Re: Last minute Covenant grrrrrrrrrrr
« Reply #14 on: February 16, 2010, 11:01:23 pm »
Pikies are travellers or gypsies.

We had a covenant slapped on us too, by our own family.  So if we develop any part of the farm, they will reap the benefits .....they already are reaping them with the payout.  It is  quite usual nowadays for people to cover their backs, so to speak.

Really, if you intend to only use the land for agricultrual purposes, and keep it that way, then it will not be a problem.

I suppose if you put the boot on the other foot, and consider if you were the seller, did not put a clause on, and then a year down the line, found the buyer had made a packet on putting houses on it.  Their solicitor will have said they should safeguard themselves against this happening.

 

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